Bajaj Finserv is offering its novel financial product for customers via Bajaj Finance Limited which is the personal line of credit. This means that a specific amount can be withdrawn by customers as per their requirements in a more flexible manner. This line of credit enables customers to make use of the amount within the pre-decided limit and they only pay interest on the amount that is utilized. The interest component is paid every month as the EMI while the principal can be repaid at the end of the loan tenor. Customers choosing the personal line of credit usually pay up to 45% lower in terms of their EMIs since they only pay interest on the amount used in this case.
Additionally, customers get competitive interest rates along with a fast loan application and approval process. The EMIs will be lower and customers can choose repayment tenors between 12 and 60 months along with choosing the amount to be withdrawn within the pre-assigned limit. There is zero collateral required for a personal line of credit along with zero hidden costs or fees for withdrawing money. There are no limits for the number of times that one can withdraw money as well.
Another major advantage is that a personal line of credit can be converted into a regular term loan. If a customer is aware that he/she may not be able to pay back the principal amount entirely, this can be switched to a term loan and repaid through monthly installments. Line of credit is offered with instant loan approvals along with disbursal of funds within 72 hours along with competitive rates of interest and loan amounts up to Rs.25 lakhs. With a personal line of credit, the principal amount has to be repaid when the loan tenor concludes. Customers can make part payments for the principal amount or they can choose bullet repayment options as well.
The latter essentially means repayment of the principal amount in a lump sum when the loan tenor ends. For example, if Rs. 10 lakhs is taken as a line of credit, this amount has to be repaid when the tenor ends, i.e. at 5 years or 60 months.